Revenue Management Verified Questions And Answers

revenue management strategies and tactics -correct answer -increase revenues and profitability -increase market share -serve more guests hurdle rate -correct answer lowest rate for a given day smoothing demand -correct answer benefit of variable pricing within rev management revenue management -correct answer a set of strategies and techniques used to sell the right product, to the right customer, at the right time, for the right price revenue magement is a set of revenue maximization strategies and statistics that -correct answer can be used to improve the profitability of certain businesses when american airlines CEO developed yield management -correct answer forecasting was critical most hotels -correct answer have multi tiered rate structures that they adjust based on key rev management variables the hotel industry recognizes rev man as -correct answer a core competencies vital to profitablility most tactical level rev man actions can be controlled with -correct answer a simple spreadsheet designed by those who use it everyday travelers today have more clout than ever before because... -correct answer they have information on virtually everything at their fingertips to unlock the full potential of rev man you need.. -correct answer -a perishable primary product -fixed-capacity environment -varied but predictable demand -high fixed costs, low variable costs RevPATI -correct answer revenue per available time based inventory capacity utilization*average revenue per service transaction rev man is... -correct answer -a set of strategies and tactics -a way of doing business identifying relevant sources and always measuring results -a fin man tool disciplines in rev man -correct answer -operations management -financial management -sales and amp, marketing management if a 300 room hotel achieves 70% occupancy for april at ADR $153 per room, what will room rev equal -correct answer $963,900 (300*.7)*30(days in April)*153 room rev -correct answer number of rooms sold*room rate charged market segment -correct answer customer group that can be readily identified by one or more characteristic in a property forecasted high period of demand, if the RM displacement analysis shows that by accepting a certain group the overall net rev gain is positive, increasing profitability, than its sales or reservation dept should be inclined to -correct answer accept the group res close to arrival (CTA) -correct answer often used for high profile guests, displacement analysis is appropriated -correct answer when a reliable forecast indicates that there's more demand than our capacity, it will be a pd of high demand "the numeric results of the (displacement) analysis should not be the only criteria for the decision" ..... -correct answer rather than a quick tactical interpretation of the numbers, one should consider other critical ( and eventually strategic) info, i.e. existing competitor key account constrained supply -correct answer 100 rooms to sell 125 rooms requested =25 denials denied reservation -correct answer unable to accommodate a guests reservation b/c the room is unavailable to avoid walking guests -correct answer -restore out-of-order rooms when possible -convert function rooms -upgrading -check room discrepancies for available rooms strategic approach -correct answer view for pricing long-term if forecasts show low demand midweek for higher priced rooms... -correct answer overbook lower priced categories of rooms and upgrade guests if necessary to the higher priced rooms unconstrained demand -correct answer hotel can meet the total demand common constraints -correct answer -capacity allocation -rate thresholds -stay(duration)control to interpret measures of a hotels performance managers often compare those measures with -correct answer -industry or sector averages -the budget for the period -historical figures from comparable/earlier periods of the hotel 200 room inn sold 5,735 rooms for the month of january , =what capacity -correct answer 92.5% (200*31)=6,200 5,735/6,200= .925 1050 room comp set sold a total of 25,400 rooms hotel A=300 sold 8,000rooms Hotel B=350 hotel C=400 -correct answer hotel A exceeded its fair share open table -correct answer is not used to monitor the progress of the marketplace if a hotel has a capacity share of 12.7% and room nights share of 11.8%= -correct answer they did not get their fair share of the room nights most internet searches.. -correct answer are not organic/ based on relevant search criteria 4 C's -correct answer Capacity calendar clock customer demand